“Fiscal Cliff: Obama, Republicans Eyeing Scaled-Back Package”


WASHINGTON — With congressional leaders set to trek over to the White House for perhaps the last high-stakes meeting before the fiscal cliff is hit, the contours of a last-ditch deal are faintly emerging.

The president will reportedly propose a scaled-down offer during that 3:00 p.m. meeting with House Speaker John Boehner (R-Ohio), Senate Minority Leader Mitch McConnell (R-Ky.), House Minority Leader Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.). Meanwhile, on the Hill, various congressional aides outlined a proposal that had the potential to resolve the stand-off.

House Republicans expect Obama may offer to extend the Bush-era tax rates for incomes under $400,000, as he had done previously before negotiations blew up. The president had originally argued that any scaled-back deal should set that threshold at $250,000. Republicans still may insist that it be set at $500,000.  FULL  ARTICLE